Orient Abrasives' board approves scheme of demerger

Dec. 8, 2010 - The board of Orient Abrasives in its meeting on 08 December 2010 approved a scheme of demerger of the refractory business of the company situated at RIICO Industrial Area, Bhiwadi, Alwar, Rajasthan from the other businesses i.e. abrasives grains division and power division of Orient Abrasives.
The company incorporated a wholly owned subsidiary public limited company, named Orient Refractories for this purpose. Orient Abrasives has been allotted 199,400 equity shares of Re 1 each by Orient Refractories on 08 December 2010, as subscriber to the Memorandum and Articles of Association.
The refractory business is proposed to be demerged into the said new company. The appointed date of the scheme is 01 April 2011 subject to the approval of the Hon'ble High Court, Delhi and other concerned authorities.
On the scheme being effective, inter alia, one equity share of Re 1 each of Orient Refractories shall be issued for every equity share of Re 1 each of Orient Abrasives held by its shareholders.